Summary Plan Description (Revised January 1, 2018)

Contributions

Employers signatory to collective bargaining agreements with the Pacific Northwest Regional Council of Carpenters are required to make an hourly contribution to this plan and the Carpenters of Western Washington Individual Account Pension Plan for each compensable hour. The total hourly contribution rate for both pension plans is determined by collective bargaining. The Board of Trustees determine how much of that hourly contribution is contributed to this plan. Table 1 lists the hourly contribution rates to this plan from 1960–2018.

The 2018 hourly contribution rate to the Carpenters Retirement Plan is $5.60 and is allocated to this plan as follows:

  • Funding Improvement Surcharge – This surcharge is 26% of the hourly contribution, not to exceed $1.25/hour. This surcharge is used to improve the plan's financial status.
  • Sustainable Income Benefit Stabilization Reserve Surcharge – This surcharge is initially set, effective September 1, 2017, to 2.3% of the hourly contribution after reduction for the Funding Improvement Surcharge. The 2.3% surcharge will continue through May 31, 2018, and then increase over the next few years to 3.9% from June 1, 2018 through May 31, 2019, to 5.5% from June 1, 2019 through May 31, 2020, to 6.4% from June 1, 2020 through May 31, 2021, to 7.4% on and after June 1, 2021. This reserve surcharge is intended to be used to "shore-up" sustainable income benefits when the plan's investment return is less than 4%.
  • Rule of 80 Surcharge – This surcharge is 16.7% of the hourly contribution after reduction for the Funding Improvement Surcharge and the Sustainable Income Benefit Stabilization Reserve Surcharge. This surcharge is used to fund the subsidy for rule of 80 early retirement.

The balance of the hourly contribution rate is used to calculate your benefit. For example, the 2018 benefit amount is $3.54/hour.

Table 1
Hourly Contribution Rates

The "Hourly Contribution" (third column) is the dollar amount contributed by signatory employers for each compensable hour. The "Funding Improvement Surcharge" (fourth column) is used to improve the plan's financial status. The "SIB Stabilization Reserve Surcharge" (fifth column) is used to "shore-up" sustainable income benefits when the plan's investment return is less than 4%. The "Rule of 80 Surcharge" (sixth column) is used to help fund rule of 80 early retirement. The "Net Hourly Contribution" (seventh column) is the portion of the hourly contribution rate that generates the monthly benefit.
Date From Date To Hourly Contribution Funding Improvement Surcharge SIB Stabilization Reserve Surcharge Rule of 80 Surcharge Net Hourly Contribution
1-1-1960 2-28-1965 $.10       $.10
3-1-1965 1-31-1967 $.15       $.15
2-1-1967 5-31-1969 $.20       $.20
6-1-1969 5-31-1972 $.25       $.25
6-1-1972 5-31-1973 $.50       $.50
6-1-1973 5-31-1975 $.60       $.60
6-1-1975 5-31-1976 $.65       $.65
6-1-1976 5-31-1978 $.70       $.70
6-1-1978 5-31-1979 $.80       $.80
6-1-1979 5-31-1980 $.85       $.85
6-1-1980 12-31-1983 $.90       $.90
1-1-1984 6-30-1989 $.80       $.80
7-1-1989 5-31-1990 $.90       $.90
6-1-1990 5-31-1991 $1.00       $1.00
6-1-1991 5-31-1992 $1.15       $1.15
6-1-1992 5-31-1993 $1.25       $1.25
6-1-1993 5-31-1994 $1.45       $1.45
6-1-1994 5-31-1995 $2.00       $2.00
6-1-1995 5-31-1996 $2.26       $2.26
6-1-1996 5-31-1998 $2.58       $2.58
6-1-1998 5-31-1999 $2.62       $2.62
6-1-1999 5-31-2000 $2.72       $2.72
6-1-2000 11-31-2000 $2.97     $.25 $2.72
12-1-2000 5-31-2001 $3.22     $.50 $2.72
6-1-2001 5-31-2009 $3.27     $.55 $2.72
6-1-2009 5-31-2016 $4.90 $1.25   $.61 $3.04
6-1-2016 5-31-2017 $5.15 $1.25   $.65 $3.25
6-1-2017 8-31-2017 $5.60 $1.25   $.73 $3.62
9-1-2017 5-31-2018 $5.60 $1.25 $.10 $.71 $3.54